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elysa elios
on Nov 22, 2024

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Jehovis, Arcamik, Riberia, and Finsik are countries in Eastern Europe. In these countries, electronic goods move freely across national borders without the friction of trade barriers, transportation costs, or perishability. These goods carry the same monetary value in all these countries. This scenario illustrates _____.

A) the law of one price
B) deregulation
C) privatization
D) a floating exchange rate

Electronic Goods

Products that use electric power for their operation, including consumer electronics like phones, TVs, and computers.

Law Of One Price

The economic theory stating that in an efficient market, identical goods must have only one price.

Trade Barriers

Restrictions set by a government to control international trade, often to protect domestic industries.

  • Explain the role of purchasing power parity in comparing economies.
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Amanda ParetteNov 23, 2024
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